Answer

1. F

   Facts

   The rule that blocks carry forward in a late return covers business, speculation and capital losses. House property loss under Sec 71B is not in that list. So house property loss can generally be carried forward even in a belated return.

2. P

   Provisions and law

   • Sec 71B (now Sec 110)Unabsorbed house property loss is carried forward for 8 years and set off only against house property income
   • Sec 80 (now Sec 121)Business and capital losses can be carried forward only if the loss return is filed by the Sec 139(1) due date
   • Sec 139(4) (now Sec 263(4))A late (belated) return can be filed up to 31 December of the assessment year or before assessment, whichever is earlier
3. A

   Analysis

   Sec 80 (now Sec 121) lists the losses that need a return by the due date to be carried forward, and Sec 71B house property loss is not among them. So a belated ITR-2 for AY 2026-27 filed by 31 December 2026 can still carry forward the house property loss. Capital losses of the same year would be lost, though. Get your CA to confirm the treatment in the live utility.

4. C

   Conclusion

   1. 1Separate house property loss from other losses.
   2. 2File the belated ITR-2 by 31 December 2026.
   3. 3Fill Schedule CFL with the house property loss.
   4. 4Check the processed intimation shows it.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.